Ratings agency Standard & Poor on Friday downgraded South Africa to junk.
According to Sikonathi Mantshantsha, deputy editor at Financial Mail, Moody's, another major rating agency, has held its rating decision until the next budget speech to see how the new ANC leadership will turn things around after the December elective conference.
They are holding on the hope that we might elect someone who actually knows what they are doing.— Sikonathi Mantshantsha, Deputy editor at Financial Mail
We hope that the ANC will elect Cyril Ramaphosa, and if that indeed does happen, we hope that he does what happened to one Robert Mugabe in Zimbabwe before the February budget.— Sikonathi Mantshantsha, Deputy editor at Financial Mail
Mantshantsha says between Jacob Zuma and Malusi Gigaba, one of them would be out of their current position before the February budget speech.
He says that Ramaphosa is a good candidate to become President as he managed to build wealth for himself and currently employs about 30 000 people.
His skills in running a big business will be beneficial for the country, says Mantshantsha.
Jacob Zuma and Nkosazana Dlamini-Zuma in their respective personal capacity, have never employed a single person and they have never generated a cent out of the ANC and the AU for South Africa.— Sikonathi Mantshantsha, Deputy editor at Financial Mail
Mantshantsha says being rated to junk status will limit the amount of money that is suppose to go to the people for services so that the country would to be able to repay it's debt.
Being junk means a lot more money will be taken away from us and the people directly affected are those receiving social grants - the pensioner and the children.— Sikonathi Mantshantsha, Deputy editor at Financial Mail
To hear more of this interview with Sikonathi Mantshantsha, listen below: